Jeff Bezos Invested in This Israeli Company

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_Bezos_Jeff_AMAZON Jeff Bezos,   AMAZON

 

Fundbox has raised funding to help expand its lending business to companies with cash flow problems.

Fundbox, an online lending site for small businesses, announced a new round of funding Thursday, adding Amazon CEO Jeff Bezos and early Twitter investor Spark Capital as new investors.

Fundbox raised $50 million in total from new investors which also included actor Ashton Kutcher and producer Guy Oseary via their private fund Sound Ventures, Khosla Ventures, and General Catalyst Partners. The company has now raised $108 million within 18 months.

Fundbox wants to help solve cash flow problems many small businesses face from delayed payments by clients and partners. According to a U.S. Bank study, 82% of small businesses fail due to poor cash management and lack of access to working capital.

Many small business invoices can take two to three months to be paid, leaving some companies short on cash to fund their operations. Business owners can connect their accounting to Fundbox including Intuit’s Quickbooks software to get automatic evaluations about their overall health.

Small businesses can borrow money from Fundbox for the amount of unpaid invoices. Money is typically transferred within one day.

Fundbox makes money by charging interest that ranges from 1 percent to 3 percent monthly, far higher than a bank loan. Founder and CEO Eyal Shinar explained that most customers pay FundBox back as soon as they receive the money from their clients. He added that businesses have an incentive to pay back funds early because they pay lower fees.

The current financing round will enable the company to continue its business and help businesses maintain a positive cash flow.

Shinar said, “The strong market demand for our product, coupled with the interest from the investment community, highlights that Fundbox is solving one of the most significant problems faced by the 29 million small businesses nationwide.”

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